ALGIERS: Orascom Telecom (OT) will eye more acquisitions including a bid for Greek firm TIM Hellas after the initial public offering of its Weather Investment later this year, its chairman said on Wednesday. Naguib Sawiris told Reuters in an interview the firm had won a $2 billion loan to consolidate existing debt and finance its purchase in December of a stake in Hutchison Telecom from Hong Kong conglomerate Hutchison Whampoa. Speaking on the sidelines of a ceremony to launch a new fixed-line venture in Algeria, Sawiris reiterated that Orascom was examining a bid for Greek mobile operator TIM Hellas. “We are still interested in Hellas. But our first priority is to do our IPO this year and once the Weather IPO is concluded then we will really consider other acquisitions, Sawiris said. The Cairo-based group has said it expects to list investment vehicle Weather Investments in the second quarter of 2006 at the earliest and will then look at potential acquisitions. Orascom used Weather Investments as a vehicle to buy Italian telecoms operator Wind from utility Enel last year in a deal worth a total of more than 12 billion euros ($14.56 billion) – one of Europe s biggest leveraged buyouts. In December, Orascom bought 19.3 percent of Hong Kong-based Hutchison for $1.3 billion, paving the way for further expansion into Asia, with a full merger possible in the future. Orascom has also the additional right to buy another 3.7 percent stake and agreed with Hutchison Telecom to cooperate on equipment procurement in a strategic alliance. “Our alliance with Hutchison is working well. We expect a lot of financial benefits, Sawiris said. “We have received a loan of $2 billion through many banks. This will give Orascom Telecom the flexibility to grow further and to conclude the Hutchison transaction, Sawiris said. Orascom Telecom last year topped the bidding for a 51 percent stake in Nigeria s state telecom firm Nitel, but the government rejected the proposal saying Orascom s $256.5 million offer missed its expectations. Asked whether Orascom was considering a second attempt, Sawiris said: No. We are not interested.
Orascom s subscribers more than doubled to over 30 million by the end of 2005, but analysts say Orascom s prospects at home may be at risk after Egypt awards a third mobile license, for which it launched a tender last week. Sawiris, however, played down the competition. “Demand is increasing. On the pricing, of course I expect prices will go down, but when prices go down, then we can achieve higher number of subscribers, Sawiris said. “I m not really worried about that (the third license). Orascom has a 48 percent stake in MobiNil, which operates one of the country s existing two mobile networks. Sawiris was speaking at a ceremony to launch Algeria s second fixed-line telephone service, a project of a consortium backed by Orascom and Telecom Egypt. The consortium has set up a joint venture called Consortium Algerien de Telecommunications (CAT) under the brand name Lacom. “Our investment will reach about $300 million by the end of 2006. We have ambitions to provide competitive prices and provide good services, CAT chief executive Emad Elazhary said. “Algeria is a very promising market for fixed-line services. We have very aggressive plans to introduce new services to the market, he added at a news conference in Algiers. State-run Algerie Telecom, currently the sole fixed-line operator with 3.2 million subscribers, is struggling to meet rising demand in the North African country of 33 million people. “We have many services to provide. We want to increase investments in this promising country, Sawiris said. Reuters
